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Redington Ltd.

BSE: 532805 | NSE: REDINGTON |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE891D01026 | SECTOR: Computers - Hardware

BSE Live

Dec 05, 16:01
180.10 2.15 (1.21%)
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AVERAGE VOLUME
5-Day
395,241
10-Day
506,151
30-Day
522,838
200,346
  • Prev. Close

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NSE Live

Dec 05, 16:06
180.10 2.10 (1.18%)
Volume
AVERAGE VOLUME
5-Day
4,286,379
10-Day
5,607,472
30-Day
5,688,200
2,177,296
  • Prev. Close

    178.00

  • Open Price

    178.90

  • Bid Price (Qty.)

    180.10 (573)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2022 2019 2018 2017 2016 2015 2014 2013 2011

Auditor's Report

The key audit matter

How the matter was addressed in our audit

Revenue recognition and trade receivables

In view of the significance of the matter, the following key audit

Revenue recognition involves certain key judgments relating to

procedures were performed by us:

identification of contracts with customers, identification of distinct

Assessed the appropriateness of the revenue recognition

performance obligations including assessment of the Company

accounting policies and its compliances with applicable

acting as a principal or agent in the transaction, determination

accounting standards.

of transaction price and the basis used to recognise revenue either at a point in time or over a period of time.

Tested the design, implementation and operating effectiveness of key internal controls, including

Revenue is recognised when (or as) a performance obligation is

related information technology systems relating to

satisfied i.e. when ''control'' of the goods or services underlying

revenue recognition.

the particular performance obligation is transferred to the customer.

Performed substantive testing of revenue transactions

recorded during the year on a sample basis by verifying

Revenue recognition has been identified as a key audit matter

the underlying documents of the sale.

because the Company and its external stakeholders focus on revenue as a key performance metric. This could create an incentive for revenue to be overstated or recognised before control has been transferred.

Performed testing for samples of revenue transactions

recorded closer to the year-end by verifying underlying documents, to assess the accuracy of the period in which revenue was recognized.

Further, the Company has significant trade receivables at year

Selected samples of contractual arrangements, tested the

end. Given the size of the balances and the risk of some of the

assessment of whether the Company acts as a principal

trade receivables not being recoverable, judgement is required

or agent in the transaction and evaluated the recognition

to evaluate the adequacy of allowance recorded to reflect

of revenue on a gross or net basis

the risk.

Evaluated management assessment of the impact

See note 2(d)(i), 2(d)(vii), 3(i), 3(u), 15, 31 and 41(c) to the

on revenue recognition and consequential impact on

standalone financial statements.

the expected credit loss allowance and other areas of judgement, including for possible effects, if any from the COVID-19 pandemic.

Supplier rebates

In view of the significance of the matter, the following key audit

The Company is entitled to price support from the suppliers in

procedures were performed by us:

the form of rebates (also referred to as backend income). The

Obtained an understanding of and assessed the design,

Company has varied types of rebate schemes and the quantum

implementation and operating effectiveness of the

of rebates recorded against cost of purchase of traded goods

Company''s key internal controls over supplier rebates.

/ services are significant in relation to the profits. Accordingly, determination of the Company''s entitlement to such rebates, its quantum and accuracy of period in which the rebates are recorded were areas of focus for our audit.

Selected samples and verified underlying documents such as program/scheme documents, credit notes / payments received to verify the accuracy of the amounts and the period in which the supplier rebates were recorded.

See note 2(d)(vi) to the standalone financial statements.

Selected samples of supplier rebates recorded in the subsequent financial period and verified the underlying documents to evaluate the accuracy of the period in which the supplier rebates were recorded.

Taxation related matters

In view of the significance of the matter, the following key audit

Determination of tax provision and assessment of contingent

procedures were performed by us:

liabilities in respect of various direct tax and indirect tax matters

Tested the design, implementation and operating

involves judgment, interpretation of laws, regulations, judicial

effectiveness of key internal controls relating taxation

pronouncements, etc. Judgment is also required in assessing

and contingencies.

the range of possible outcomes for some of these matters.

Evaluated judgements used in respect of estimates of

The Company makes an assessment to determine the outcome of these matters and decides to make an accrual or consider it to be a possible contingent liability in accordance with applicable accounting standards.

provisions, exposures and contingencies.

Involved our tax specialists to read and analyse select assessment orders and other correspondences and documents obtained by Company for key tax matters.

Accordingly, tax provisions and contingent liabilities are areas of focus in the audit.

Evaluated the Company''s judgements in respect of estimates of provisions, exposures and contingencies by

See note 2(d)(iii), 3(n), 3(o), 38 and 48 to the standalone

involving our tax specialists to assess the status of recent

financial statements.

and current tax assessments.

Considered third party advice received by the Company, wherever applicable, the outcome of previous claims, relevant judicial pronouncements and developments in the tax environment.

Evaluated the adequacy of disclosures on provisions and contingencies made in the financial statements.


Report on the Audit of the Standalone financial statements Opinion

We have audited the standalone financial statements of Redington (India) Limited (the Company), which comprise the standalone balance sheet as at March 31, 2022, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information in which are included the financial statements (the Returns) for the year ended on that date audited by the branch auditors of the Company''s branch at Singapore.

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of the branch auditors on financial statements of such branch as were audited by the branch auditors, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (Act) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, and its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us along with the consideration of reports of the branch auditors referred to in paragraph (a) of the Other Matters section below, is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Other information

The Company''s Management and Board of Directors are responsible for the other information. The other information comprises of reports such as Board''s Report, Business Responsibility Report and Corporate Governance Report (but does not include the standalone financial statements and our auditor''s report thereon) which we obtained prior to the date of

this Auditor''s report, and the remaining sections of the Annual report, which are expected to be made available to us after that date.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

included in respect of the branch, is based solely on the report of such branch auditors.

The branch''s financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in its country and has been audited by branch auditors under generally accepted auditing standards applicable in its country. The Company''s management has converted the financial statements of such branch located outside India from accounting principles generally accepted in its country to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Company''s management. Our opinion in so far as it relates to the balances and affairs of such branch located outside India is based on the reports of branch auditors and the conversion adjustments prepared by the management of the Company and audited by us.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 (the Order) issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. (A) As required by Section 143(3) of the Act, based on our

audit and on consideration of reports of the branch auditors on separate financial statements of the branch as were audited by branch auditors, as noted in ''Other Matters'' paragraph, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the branch not visited by us.

c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.

d) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account and with the returns received from the branch not visited by us.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this Auditor''s Report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report on the other information that we obtained prior to the date of this Auditor''s Report.

When we read the remaining sections of Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions, as applicable under the applicable laws and regulations.

Management’s and Board of Directors’ Responsibilities for the Standalone financial statements

The Company''s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Management and Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company''s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)0) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.

Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of branch of the Company to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of financial statements of the Company of which we are the independent auditors. For the branch included in the standalone financial statements, which have been audited by branch auditors, such branch auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in section titled Other Matters in this audit report.

We believe that the audit evidence obtained by us along with the consideration of audit reports of the branch auditors referred in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

We did not audit the financial statements of a foreign branch included in the standalone financial statements of the Company whose financial statements reflect total assets (before consolidation adjustments) of INR 171.47 crores as at March 31, 2022 and total revenue (before consolidation adjustments) of INR 157.26 crores and net cash outflows (before consolidation adjustments) amounting to INR 2.39 crores for the year ended on that date, as considered in the standalone financial statements. The financial statements of the branch has been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures

e) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.

f) On the basis of the written representations received from the directors as on March 31,2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2022 from being appointed as a director in terms of Section 164(2) of the Act.

g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B.

(B) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditor''s) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

a) The Company has disclosed the impact of pending litigations as at March 31, 2022 on its financial position in its standalone financial statements - Refer Note 38 to the standalone financial statements.

b) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

d) (i) The management has represented that, to the

best of its knowledge and belief, as disclosed in note 18 to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (Intermediaries), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) The management has represented, that, to the best of its knowledge and belief, as disclosed in note 26 to the standalone financial statements, no funds have been received by the Company from any persons or entities,

including foreign entities (Funding Parties), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

(iii) Based on audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) of Rule 11 (e) contain any material misstatement.

e) The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.

As stated in note 50(a) to the standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

(C) With respect to the matter to be included in the Auditor''s Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

for B S R & Co. LLP

Chartered Accountants

Firm''s Registration No.- 101248W/W-100022

S Sethuraman

Partner

Membership No. 203491

UDIN: 22203491AJJDNW6828

Place: Chennai

Date: May 21,2022